MYNORTHWEST NEWS

King County court rules against Seattle income tax

Nov 22, 2017, 3:03 PM | Updated: 3:12 pm

Court ruling Olympia man sentenced...

Judge rules in case of an Olympia man. (Flickr)

(Flickr)

The City of Seattle lost its fight for an income tax in King County court Wednesday.

While losing a case in court is usually cause for concern, for Seattle, it plays into the city’s plan to take its income tax to the state Supreme Court.

RELATED: Making the case for Seattle’s income tax

Wednesday’s ruling is celebrated by those suing the city.

“Today’s ruling is a victory for all taxpayers in Seattle and throughout the state, and for everyone who values the rule of law,” said Brian T. Hodges, a senior attorney with Pacific Legal Foundation who represents several Seattle residents in challenging the tax. “Seattle politicians billed their plan as a ‘wealth tax,’ but it’s ultimately aimed just as much at the middle class and even the poor.”

The judgement by Judge John Ruhl essentially states that the plaintiffs’ case has merit. The judge denied the city a summary judgement which would have sped up the legal process and delivered the city a win. The fight against Seattle’s income tax is now over in county court — a waypoint on the city’s course to the Supreme Court. To move it forward, the city will have to appeal.

Seattle income tax

After passing an income tax this year, Seattle was sued by four parties. According to court documents, Seattle argued that “it is time to reverse a long line of Washington Supreme Court decisions, all of which hold that income taxes are ‘property taxes’ and thus subject to the ‘uniformity’ restrictions that art.” It speaks to the city’s ultimate goal to get its income tax beyond King County’s court and to the court in Olympia.

The city also argued that its income tax was actually an excise tax, and that it only applied to total income, not net income which is prohibited by state law. But Judge Ruhl denied the city’s arguments, saying that “the city’s tax is not an ‘excise tax'” and therefore is not authorized by state law.

“By subverting constitutional protections against discriminatory tax schemes, their strategy was to pave the way for more taxes, on more people, at all income levels,” Hodges said. “They also sought to undermine the fundamental principle that your income is your property, protected by constitutional safeguards for property rights. The court performed a service for all taxpayers, and all property owners, by defeating the city’s strategy to undermine their rights.”

MyNorthwest News

Pierce County homicide shot...

Jason Sutich

Detectives investigate after victim found shot in Pierce County shed

A homicide investigation is underway in Pierce County after a victim was found on the floor of a shed with apparent gunshot wounds on Monday.

5 minutes ago

bellevue gas thief truck fire...

JASON SLOSS, KIRO 7

Suspected gas thief sparks truck fires at Bellevue apartment complex

A suspected gas thief got away after sparking a truck fire at a Bellevue apartment complex over the weekend.

1 hour ago

wa meth broker fentanyl...

Jason Sutich

Drug broker sentenced to 12.5 years for shipping ‘highly pure’ meth, fentanyl to western Washington

A Phoenix man with prior convictions for drug trafficking was sentenced to 150 months for acting as a broker for massive amounts of meth headed to Washington.

3 hours ago

Neighbors hope a judge will temporarily close Denny Blaine Park due to public masturbation and othe...

Nia Bliss, KIRO 7 News

Neighborhood group claims ‘illicit activity’ caught on camera at Denny Blaine Park again

A neighborhood group claimed a weekend event at Denny Blaine Park brought in a large crowd and lewd acts.

4 hours ago

Capitol Hill james beard chef...

MyNorthwest Staff

Chef with ties to James Beard winners to open Parisian-inspired bistro in Capitol Hill

Ash Stockham, a head chef under several James Beard Award winners and nominees, is opening a Parisian-inspired bistro in Seattle's Capitol Hill neighborhood.

4 hours ago

mukilteo hit-and-run fatal crash...

Jason Sutich

All lanes of southbound SR 525 reopen in Mukilteo after fatal hit-and-run motorcycle crash

All lanes of southbound SR 525 are fully blocked south of Beverly Park Road in Mukilteo following a fatal hit-and-run collision on Tuesday.

5 hours ago

King County court rules against Seattle income tax